Warning Speed Bumps Ahead! What Home Sellers Need to Expect. Part One – Pre Approved Buyers are not qualified.

Things have changed, today's buyers are no Qualified

Expect a bumpy road with your buyer's finances.

This is the first in a series that I will be writing to help people selling their homes in Lexington Kentucky.

I am starting with the things that The Jubilee Team has experienced.  These posts are meant to help home sellers be prepared for the bumps.  They are not meant to scare sellers but to prepare you so that you are not caught off guard.

Today’s post is a warning to be prepared for some severe bumps when it comes to the buyers being Pre Approved.

Lenders no longer write Qualification Letters.  All the letters now are Pre-Approval letters.  These Pre-Approved buyers have gone through a preliminary process that tells the lender usually that the buyer is ready to begin the buying process.

However the letters always have a list of items that state the buyer will need to provide additional information and provide proof of employment, income, etc.

One very common condition in a Pre-Approval letter is “Buyer will Provide Acceptable Verification of Funds to Close.”

We have had the underwriters at the very last minute require buyers to prove the source of an $80 deposit.    This kind of minute detail can delay a closing and even kill the deal.  If the buyer is not a good record keeper coming up with proof of these funds can be time consuming.  If the buyer has been earning money on the side and not claiming their income of course then it becomes a matter to report to the IRS.  The buyer then may be scrambling to pay the government rather then buy a home.

Stay tuned for the next post:  Buyers are often unaware of credit problems and sometimes these are revealed just before closing.

 

 

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